New Delhi: The State Bank of India on Wednesday slashed its interest rate on savings deposits, with a balance of upto Rs 1 lakh, by 25 bps to 3.25 per cent, stated a report. This cut in interest rate is effective from November 1 onwards.

Further, the bank also slashed the interest rates on retail and bulk term deposits by 10 and 30 bps respectively. These rate cuts are applicable for a time period of 1 year to less than 2 years and are effective from October 10 onwards.

“In view of the adequate liquidity in the system, the State Bank of India announces revision in interest rate on Savings Bank Deposits (with a balance upto Rs 1 lakh) from 3.50 per cent to 3.25 per cent w.e.f. 1st November 2019,” stated SBI in an official statement as quoted by news agency IANS.

It must be noted that the shares of SBI were trading at Rs 254.95, which is an increase of Rs 5.85 at a recovery rate of 2.35 per cent more than the 4 per cent from lows.

Earlier, SBI had lowered its Marginal Cost of Funds based Lending Rate (MCLR) by 10 basis points across all tenors to 8.05 per cent from October 10. This move is expected to make home and other retail loans cheaper for the current borrowers. Notably, this is the sixth cut in MCLR in FY 2019-20, which comes days after the Reserve Bank of India lowered the repo rate by 25 basis points, stated news agency IANS.